Strengthening Canada's Defence Sector Act

Bill C-40, Strengthening Canada's Defence Sector Act · Second reading · now at committee in the House Where it stands

What Bill C-40 would do

The bill would create the Canadian Corporation for Defence Investment to handle production, buying, and investment for the Canadian Armed Forces, the Department of National Defence, and partner governments. It would also expand federal buying and stockpiling powers to cover national security supplies and services. The responsible minister would gain authority to make financial investments in defence and security sectors, and new procurement rules would be set. The bill would also require a future review of these changes.

Official text (opens in a new tab)

11 statements

Julie Dzerowicz, Davenport

Liberal
“I want the House to pass this bill and send it to committee. The world is becoming more dangerous, and our military takes too long to buy the equipment it needs. This bill creates a dedicated government agency to buy defence supplies faster and support Canadian jobs.”
Official Hansard

Mr. Speaker, as always, it is a true honour for me to rise in the House on behalf of the residents of my constituency of Davenport. I am rising to speak to Bill C-40, the strengthening Canada’s defence sector act. I am also speaking as the chair of the Canadian NATO Parliamentary Association, and I am very proud also to serve as the vice-president of the NATO parliamentary assembly. I spend a lot of time with parliamentarians from across our alliance, and what I hear from them helps explain why this bill is so important right now. Let me start with what the bill would actually do. Bill C-40 has two parts. The first part would establish as a Crown corporation the Defence Investment Agency, which we launched just over a year ago. Its job would be to carry out the production, procurement and investment of defence assets for the Canadian Armed Forces, the Department of National Defence and our NATO allies. Its chief executive officer would report to the board of directors, and the corporation would remain accountable to Parliament through a responsible minister. The second part of the bill would amend the National Defence Act to create an associate minister of national defence for procurement so that, for the first time, defence procurement would sit under one responsible minister. It would also update the Defence Production Act, which would allow Canada to stockpile critical supplies and to invest directly in our defence and security sectors. This is what is in the bill. I would like to spend the rest of my time talking about why we absolutely need it. For over 70 years, Canadians have lived within an international order that we helped build after World War II, one based on rules, on open trade and on strong institutions such as NATO and the United Nations. It was never perfect, but it brought us decades of peace and prosperity. That world has changed in a very significant way, and I agree with our Prime Minister when he says, “We are in the midst of a rupture, not a transition.” We are watching the rise of authoritarianism and, in some places, fascism. Russia continues its brutal war against Ukraine, and the tariffs imposed by our closest neighbour have hurt Canadian workers and shaken the global economic system that so many of our jobs depend on. I know that many of the residents in my riding of Davenport are feeling this. When I talk to people at community events or at the door, I hear a real unease, a sense that something fundamental has shifted. To me, they are right to feel this way. I do not think we can afford to be nostalgic for the world as it was. We have to deal with the world as it is today. One of the biggest changes is in the nature of war itself. Admiral Pierre Vandier, who leads NATO’s Allied Command Transformation and recently visited Canada, has been warning that the lines among peace, crisis and war have broken down and that our adversaries are working around the clock, below the threshold of open conflict in what he calls the grey zone. NATO now has a name for this: cognitive warfare. It means our adversaries are not only trying to take territory but are also trying to change how we think, they are trying to divide us and they are trying to make us lose faith in each other and in our democracy. Let me put it simply: An attack on Canada today may never involve a single soldier crossing our border. It could mean someone stealing our data or our money, spreading disinformation in our communities or trying to get into the systems that run our water and electricity. Admiral Vandier also said, “The most expensive commodity today is time”, and that line has stayed with me because time is precisely what our current procurement system has been costing us. Canada, as we know, is the second-largest country in the world by land mass, with the longest coastline on earth and an Arctic that is opening up and attracting more and more attention from others. Defending a country this size takes the right equipment, delivered on time. In the past, too often we have not delivered. Our public servants have worked incredibly hard on these files. The problem, though, is a system that was never built for the speed this world now demands. As a result, our women and men in uniform have too often waited years, sometimes decades, for the equipment they need to do their job. That is why we are proposing a Crown corporation. The change we need is urgent, and I believe we need a dedicated institution with the authority to deliver it. As a Crown corporation, the agency would be able to negotiate contracts using commercial practices that industry already understands, and it would bring procurement and strategic investment together under a single mandate so decisions can move much faster. Allies like the United Kingdom, Australia and Sweden have had dedicated defence procurement bodies for years, and this bill would bring Canada in line with all of them. I know some members of this House will say that a new Crown corporation simply adds more bureaucracy. I would say it does the reverse, because it brings work that is now split across three departments into one place and removes many duplicate approvals. I also want to be clear that accountability matters. The corporation would still follow Treasury Board rules. It would still be audited, it would still report to this House and it would still answer to a minister. Now, I want to take a moment to speak to a question I often hear from residents of my constituency of Davenport, a community that has always cared deeply about peace and social justice. People often ask me, “Why are we spending so much on defence?”, and whether that money and effort should be going towards peace instead. I want them to know that I share their commitment to peace. Where I have landed is that in today’s world, peace has to be protected, and that requires us to be able to defend ourselves. Strong deterrence is often what stops a dangerous situation from turning into a war. I believe that a Canada that can defend its own sovereignty will be a much stronger voice for peace, human rights and diplomacy around the world. This is also about our responsibility to our allies. Every time I meet with my NATO colleagues, I hear about how much they are counting on Canada to do its part, because collective security only works when every member contributes. I am proud that, for the first time since the end of the Cold War, Canada has met NATO’s 2% target, and that we have committed to reaching 5% by 2035. Bill C-40 is how we will make sure that this investment turns into real capability for our forces and our allies, delivered on time. I also want to mention jobs. Our defence industrial strategy aims to have 70% of defence acquisitions go to Canadian firms and to create up to 125,000 good-paying jobs. Our goal is that when Canada buys, we build here in Canada, using Canadian steel and aluminum, and the talent of Canadian workers. We are already seeing this happen with more than $11 billion for new icebreakers at Chantier Davie in Quebec and with an expanded armoured vehicle fleet that will sustain thousands of jobs in London, Ontario. Does this mean that all is done? Absolutely not. We have so much more to do, but this bill is one important step, and it gives us the institution we need to get this work done at the speed this moment requires. My grandparents came to this country in the 1950s, and Canada gave them a safe, free and democratic place to build their lives. I think about that often and about our responsibility to protect what earlier generations built for us, especially now when the world feels so much less certain. I have a lot of confidence in Canadians. I believe we can protect our sovereignty, stand with our allies, grow our economy and continue to be the voice for peace in the world. I believe that Bill C-40 will help us do that. I urge all members of this House to support this bill, and to send it to committee where we can study it carefully and make it even stronger.

Julie Dzerowicz, Davenport

Liberal
“We need this defence corporation now because the world has changed so much. We should discuss the details of the bill in committee.”
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Official Hansard

Mr. Speaker, I want to thank the hon. member for his extraordinary contribution to our country. I know that he served in the Canadian Armed Forces. He is also heavily involved in the Canadian NATO Parliamentary Association. I always value his voice, his questions and his wisdom as part of our team. I know the hon. member made a reference how, in the past, this Crown corporation would not have been needed. That is why I spent quite a bit of time in my speech talking about how the world has so transitioned and transformed. We are in the middle of a rupture. We have to do extraordinary things at this particular moment. What I would say to the member is, indeed, we do need this Crown corporation now, and I think I have explained the value of it. In terms of his question around the third part, and whether we would be open to review, I would say that is why we have committees. It is important for us to discuss these ideas at committee.

Julie Dzerowicz, Davenport

Liberal
“I want this bill to go to committee. It sets up a new Crown corporation to buy military equipment faster and better. It will still have strict rules, audits, and oversight to keep it accountable.”
Official Hansard

Mr. Speaker, I want to remind the hon. member about the importance of moving this bill forward to committee. I think there is always room for us to make recommendations if there are areas that we think we need to improve. I will remind everyone that this bill would help us streamline Canadian defence procurement under a Crown corporation. We would build a system that is faster, more efficient and ready to meet Canada’s needs today and into the future. I would say that in terms of accountability, under the system that we are proposing as part of part 1, the chief executive officer would be accountable to the board of directors for the management and administration of the corporations. It would also be accountable to the Government of Canada through a responsible minister and would have strict financial and reporting requirements, participate in audits and be subject to parliamentary oversight.

Natilien Joseph, Longueuil—Saint-Hubert

Liberal
“My riding has a military base. How will this bill help local businesses keep Canada safe, grow the local economy, and create good jobs?”
Official Hansard

Mr. Speaker, Longueuil—Saint‑Hubert has a military base with real soldiers who work extremely hard to protect our territorial sovereignty with known expertise in the defence sector. How will this legislation enable our businesses to contribute more to keeping Canada safe while stimulating the local economy and creating good jobs for our workers?

Julie Dzerowicz, Davenport

Liberal
“This bill helps strengthen our defence sector. Our goal is to have 70% of defence purchases go to Canadian companies and create up to 125,000 jobs.”
Official Hansard

Mr. Speaker, I want to thank the hon. member for his excellent work on the Standing Committee on Immigration and Citizenship. I want to mention, in response to his excellent question, that developing our defence industrial base is absolutely critical to what we are trying to do and what this bill is trying to help us do in terms of strengthening Canada’s defence sector. We are aiming to have 70% of defence acquisitions go to Canadian firms and to create up to 125,000 good-paying jobs. I will tell colleagues how that is going to be good for—

Kevin Lamoureux, Parliamentary Secretary to the Leader of the Government in the House of Commons

Liberal
“A Crown corporation can do a lot of good when it has a clear goal and stays independent from the government. This bill makes sure it will be open and accountable. I want to know if the member has any specific changes she wants to make to this bill.”
Official Hansard

Mr. Speaker, I know that the leader of the Green Party, who has been around for many years, whether as a parliamentarian or a non-parliamentarian, is always looking at how governments can be made accountable. I am sure she is aware of this. We talk about Crown corporations. I believe that with a proper mission statement, a Crown corporation can do society a great favour being at arm’s length from government. I am sure the member would agree with that. The issue is making sure that there is a transitional action to support transparency and accountability. I believe this legislation provides for that. Does the member have some specific amendments she would like to bring forward? Even if she does not name them now, I think providing them to the minister would be advantageous.

Kevin Lamoureux, Parliamentary Secretary to the Leader of the Government in the House of Commons

Liberal
“I want to know if the Green Party leader will support this bill so it can go to committee.”
Official Hansard

Mr. Speaker, does the leader of the Green Party have the intention of supporting the legislation so that it goes to the committee stage?

Kevin Lamoureux, Parliamentary Secretary to the Leader of the Government in the House of Commons

Liberal
“More people are applying to join our military than at any point in the last 30 years. Our government is spending 2% of our national income on defence, which is far more than the Conservatives did. We have increased military pay and equipment. I want the Conservatives to explain why they oppose a Crown corporation.”
Official Hansard

Mr. Speaker, just because a Conservative says it, does not make it true. We have a record number of people applying to become members of the forces. In fact, last year was a 30-year high. We have a Prime Minister and a government that is investing 2% of the GDP into the Canadian Forces. We can contrast that to the 1%. If we factor out the Coast Guard element being brought in, like the United States has done, we are still miles ahead of what the member’s leader, when he sat in cabinet, had in contributions to the Canadian Forces. The pay has gone up, as well as the materials, and now we are talking about a Crown corporation. Tell us why you oppose Crown corporations.

Natilien Joseph, Longueuil—Saint-Hubert

Liberal
“I want to ask my colleague a question. Does he believe we should trade with more allied countries to strengthen our ties with them?”
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Official Hansard

Mr. Speaker, I have deep respect for my colleague, even though we sometimes have differences of opinion in the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities. The question I have for my colleague is this: Does my colleague truly believe in diversifying our markets in order to strengthen our trade ties with other countries, our allies, to be specific? Does he believe in that?

Natilien Joseph, Longueuil—Saint-Hubert

Liberal
“Can the member tell small and medium-sized businesses that this bill will help them create good jobs?”
Official Hansard

Mr. Speaker, I would like to come back to job creation in Canada. Can my colleague send a message to our small and medium-sized enterprises that Bill C-40 will benefit them and help them create good jobs?

Kevin Lamoureux, Parliamentary Secretary to the Leader of the Government in the House of Commons

Liberal
“I want the House to agree to end our work for the day early.”
Official Hansard

Mr. Speaker, I suspect that if you were to canvass the House, you would find unanimous consent to call it 6:43 p.m. so we can adjourn the House.

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